InvIT IPO: NHAI InvIT to be in the market by month-end
ROADS & HIGHWAYS

InvIT IPO: NHAI InvIT to be in the market by month-end

The first Infrastructure Investment Trust (InvIT) by the National Highways Authority of India (NHAI), by which it aims to raise Rs 5,100 crore, is expected to enter the market by the end of May or early June.

PowerGrid InvIT (PGInvIT), promoted by power transmission utility PowerGrid Corporation of India (PGCIL), began in late April. Also, its shares first traded on the exchanges on Friday- will be out of bounds for retail investors. The NHAI InvIT is the second one launched by a public-sector body to be accepted by investors within a month.

NHAI has decided to reserve a coveted InvIT IPO, through which it intends to monetise a few of its assets for institutional investors.

According to the sources, market regulator SEBI has approved the draft prospectus stated by the National Highways Infra Investment Managers (NHIIM), the investment manager who will manage the InvIT.

NHIIM is now considering the profiles of the issue with the potential investors, both domestic and international. According to the rule, an entity cannot subscribe to more than 25% of the offering. The minimum bid value is estimated to be Rs 26 crore. The promoter NHAI will have to retain a 15% stake for a lock-in period of three years.

The units are intended to be recorded on the NSE. Profits from the listing shall be used for infusion of debt or equity into the projects SPV, National Highways Infra Projects Pvt Ltd (NHIPPL), for the payment of initial calculated concession value to NHAI and payment of development and recovery costs of the five stretches measuring 389 km induced under the SPV. The SPV will obtain tolls on these stretches for 30 years.

The company will receive 100% of the equity shares of the SPV from NHAI.

The draft placement memorandum NHIIM assigned with SEBI said that the Board of the investment managers has already secured term sheets from reliable lenders concerning loans amounting to approximately Rs 6,463 crore to be received by the trust. The NHIM Chairman and the Managing Director, have been consigned with the powers to consult and finalise the terms of financing for an amount up to Rs 2,000 crore.

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Also read: NHAI expects to launch first tranche of Rs 5k cr InvIT in May

Also read: NHAI InvIT to replace urban with rural roads

The first Infrastructure Investment Trust (InvIT) by the National Highways Authority of India (NHAI), by which it aims to raise Rs 5,100 crore, is expected to enter the market by the end of May or early June. PowerGrid InvIT (PGInvIT), promoted by power transmission utility PowerGrid Corporation of India (PGCIL), began in late April. Also, its shares first traded on the exchanges on Friday- will be out of bounds for retail investors. The NHAI InvIT is the second one launched by a public-sector body to be accepted by investors within a month. NHAI has decided to reserve a coveted InvIT IPO, through which it intends to monetise a few of its assets for institutional investors. According to the sources, market regulator SEBI has approved the draft prospectus stated by the National Highways Infra Investment Managers (NHIIM), the investment manager who will manage the InvIT. NHIIM is now considering the profiles of the issue with the potential investors, both domestic and international. According to the rule, an entity cannot subscribe to more than 25% of the offering. The minimum bid value is estimated to be Rs 26 crore. The promoter NHAI will have to retain a 15% stake for a lock-in period of three years. The units are intended to be recorded on the NSE. Profits from the listing shall be used for infusion of debt or equity into the projects SPV, National Highways Infra Projects Pvt Ltd (NHIPPL), for the payment of initial calculated concession value to NHAI and payment of development and recovery costs of the five stretches measuring 389 km induced under the SPV. The SPV will obtain tolls on these stretches for 30 years. The company will receive 100% of the equity shares of the SPV from NHAI. The draft placement memorandum NHIIM assigned with SEBI said that the Board of the investment managers has already secured term sheets from reliable lenders concerning loans amounting to approximately Rs 6,463 crore to be received by the trust. The NHIM Chairman and the Managing Director, have been consigned with the powers to consult and finalise the terms of financing for an amount up to Rs 2,000 crore. Image Source Also read: NHAI expects to launch first tranche of Rs 5k cr InvIT in May Also read: NHAI InvIT to replace urban with rural roads

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